The Bank of Ghana has told Citi Business News, that portions of export proceeds from cocoa and gold will now be pumped directly into the financial and capital markets from the second half of 2016.
The move is to allow banks gain accessibility to the markets to trade freely as well as deepen the foreign exchange market and promote its smooth functioning.
[contextly_sidebar id=”Ys9xgyKTENynVJ1VwqOhyjHCpBDXDDJD”]The move Citi Business News understands will also promote smooth functioning of export proceeds.
Export proceeds currently only go through the Bank of Ghana, as the ultimate Central bank of Ghana.
Head of the Governor’s Department at BoG, Stephen Amegashie, made this known at a two-day advanced training workshop aimed at equipping members of the Journalists For Business Advocacy.
Mr. Amegashie was speaking on behalf of Mr. Millison Narh, First Deputy Governor of BoG.
He emphasized that the move is to deepen the country’s foreign exchange market.
‘Previously, export proceeds from cocoa and gold were surrendered to the Bank of Ghana.
Bank of Ghana then in turn sells to the banks as and when the need arises.
Now from the second part of the year, the program is, when you earn the foreign exchange, it directly goes to the banks without coming through the bank of Ghana. The banks, whoever earns the foreign exchange, will have access to it and will sell it on the interbank market, the same thing with the cocoa proceeds.
Previously, Bank of Ghana was taking all the resources and then selling to the markets. Now, the resources are no more welcome to the bank of Ghana to sell, it goes directly to the various banks’.
Ghana is the world’s second-biggest cocoa producer and Africa’s biggest gold miner after South Africa.
Directing the export earnings to commercial banks will help deepen Ghana’s foreign exchange market and reduce volatility in the exchange rate, the International Monetary Fund said in a January review of the country.
By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana